Renovation spending plans fall to 5-year low

Almost half of Canadian homeowners are planning some renovation work on their homes this year but their intentions are focused on repairs and maintenance.

Spending is set to be 7% lower in 2018 than last year, at an average $11,000, the lowest for 5 years according to the CIBC Home Renovations Poll.

"Canadians continue to see the value of investing in their homes, but they're taking a very practical approach by focusing on lower-cost projects this year," says Edward Penner, Executive Vice-President, CIBC Personal and Small Business Banking.

Regionally, the curbs in renovation spending vary with those in Ontario still planning to spend $13,600 – although that’s down from $16,000 in 2017 – and BC homeowners have cut more than $3,000 from their budget with an average spend of $9,900.

Homeowners in Alberta have the lowest spending intention at $8,100 although this is up from $7,400 last year. Those in Quebec ($9,900) and Atlantic Canada ($9,500) are also spending slightly more this year.

Cash or savings (59%) is the top way to fund projects with 29% opting to use a loan, line of credit, or credit card.

Renovations are a good investment
Most respondents (86%) said that believe any renovation is an investment in the value of their home.

Most (71% cent) Canadian homeowners aged 55+ would prefer to stay put and renovate their current home than sell it and move elsewhere. Boomers plan to spend about $10,800 on average, down 36% from $16,800 last year, to address wear and tear primarily.

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